The Value of Terroir: Hedonic Estimation of Vineyard Sale Prices
17 Pages
Posted: 23 Jan 2011
Applied Economics
Oregon State University
Harvard University - Harvard Kennedy School (HKS); Resources for the Future; National Bureau of Economic Research (NBER)
There are 3 versions of this paper
Date Written: January 20, 2011
Abstract
We examine the value of terroir, which refers to the special characteristics of a place that impart unique qualities to the wine produced. We do this by conducting a hedonic analysis of vineyard sales in the Willamette Valley of Oregon to ascertain whether site attributes, such as slope, aspect, elevation, and soil types, or designated appellations are more important determinants of price. We find that prices are strongly determined by sub-AVA appellation designations, but not by specific site attributes. These results indicate that the concept of terroir matters economically, although the reality of terroir – as proxied for by locational attributes – is not significant.
Keywords: wine, vineyard, hedonic price analysis
JEL Classification: C2, Q11
Suggested Citation:
Suggested Citation
Cross, Robin M and Plantinga, Andrew and Stavins, Robert N., The Value of Terroir: Hedonic Estimation of Vineyard Sale Prices (January 20, 2011). Available at SSRN: https://ssrn.com/abstract=1745122 or http://dx.doi.org/10.2139/ssrn.1745122
